RAPID CITY, S.D. (KOTA) – The rural Midwest economy took a blow last year, hitting a five-year low due to falling corn, wheat and soybean prices and other factors, according to a Creighton University study.
The report shows low commodity prices led to revenues well below break-even for farmers.
The study also revealed that manufacturing saw nine straight months of declining employment through December 2025.
Key factors were high input costs, tariff concerns and a decrease in farm equipment sales.
The report shows farm equipment sales fell for 26 straight months as of October 2025, greatly affecting Iowa.
Doris Lauing, executive director of the South Dakota Stockgrowers Association, said western South Dakota didn’t feel the impact of declining equipment sales.
“I think the eastern side of South Dakota probably felt it, but then again, they have federal crop insurance that helps with those LDPs (loan deficiency payments) of bringing the market prices up for them,” said Lauing. “So, they have a little bit of government assistance that’s coming to them.”
More than 70 percent of bankers who participated in the study supported President Trump’s trade approach, expecting it to lead to lower global tariffs.
“We support President Trump’s decision,” Mario Tarango, a board member of R-CALF USA, said. “As far as how he does it, there is some different opinions on how he’s going about it, but as far as putting American ranchers first, we are 100% behind him in that.”
Creighton University’s survey covers a nine-state region that includes South Dakota, Nebraska and Illinois.
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